ALABAMA ADJUSTERS LICENSE QUESTIONS
WITH 100% ACCURATE ANSWERS
ALABAMA ADJUSTER LICENSE
STUDYGLOBAL 5/16/25 ALABAMA ADJUSTER LICENSE
,Accident Insurance - Accurate answers Covers expenses associated with a covered accident and
can extend to ambulance and emergency room
expenses, intensive care, and hospital costs. Accident insurance also provides for loss of income, and a
death benefit if injuries prove fatal
Accumulated Depreciation - Accurate answers The total decrease in an item's value over a period
of time. Formula: (annual depreciation x number of
years used). Subtract this number from the item's replacement cost to get its actual cash value (ACV).
Acreage Reporting Date - Accurate answers In crop insurance, the deadline for providing the
insurer with an acreage report, which is used to
determine the amount of coverage needed and the premium charged for a particular crop.
Actual Cash Value (ACV) - Accurate answers A valuation method used by insurers to reflect an
item's current market value right before being damaged
or destroyed. Formula: (replacement cost - accumulated depreciation)
Actual Production History - Accurate answers A history of a farmer's crop yields over a multi-year
period, which is used to determine the normal
production level of a farm.
Adhesion - Accurate answers Characteristic of an insurance contract. Means that one party (the
insurer) sets the terms, and the other
(the policyholder) can "take it or leave it.
Adjusted Gross Revenue
(Crop Insurance) - Accurate answers Narrowest (and least expensive) form of crop revenue
insurance. Insures farm revenue as a whole
instead of individual crops. Guarantees a percentage of the insured farm's average revenue.
Adjuster - Accurate answers An agent who, for compensation, processes insurance claims. The
adjuster investigates the damages,
evaluates the claim, and makes a fair and equitable settlement based on the insurance contract. Can
represent either the insured or the insurer.
Adjuster - Emergency - Accurate answers Adjusters who are temporarily licensed by the insurance
commissioner to handle claims during
catastrophes or emergencies that produce an overwhelming number of claims in a short period of time.
Adjuster - Independent - Accurate answers Self-employed adjusters who contract with multiple
insurers at the same time. Paid on a commission or
fee-plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster.
Adjuster - Public - Accurate answers An adjuster who is hired to represent the claimant and help
determine a fair indemnification. Usually
specializes in appraisals and negotiation. Paid commission, usually a percentage of final settlement.
,Adjuster - Staff - Accurate answers Salaried employee of one insurance company who can work
locally, regionally, or nationally. Also called:
Company Adjuster
Advance Payment
Settlement - Accurate answers A settlement option that lets the insurer offer some financial relief
to the claimant before the claim has
been fully settled. The insurer makes advance payments to the claimant, which are then subtracted
from
the final settlement amount. Often used when a claimant suffers bodily injury and is unable to work.
Agency Authority - Accurate answers The agent's authority to act on behalf of someone else (the
principal), usually an insurer. This authority is
derived from the agent's contract with the principal. It can be apparent, express, or implied
Agency Authority -
Apparent - Accurate answers Indirect authority that the agent can reasonably be assumed to have,
based on appearances. If an
adjuster is equipped to represent an insurer (with the insurer's permission), then an individual can
assume
that the adjuster has the authority to act on the insurer's behalf.
Agency Authority -
Express - Accurate answers Authority that is expressly given to the agent in writing. Allows the
agent to act on behalf of the principal.
Agency Authority - Implied - Accurate answers Authority that an agent possesses by implication of
her behavior, regardless of whether this authority is
granted in writing. For example, a person portraying herself as a representative for an insurance
company, even though she is not employed by that company.
Agent (Insurance) - Accurate answers Someone who has received authority from an insurer to sell
or service insurance policies.
Agreed Value - Accurate answers A valued policy in which the insurer and the insured agree to a
specific value for an item, appraised at the
inception of the policy. Often used to insure items whose value is difficult to quantify, such as antiques
or
fine art. Also called a Guaranteed Value policy.
Agreement - Accurate answers One of the four requirements of a legally binding contract. All
parties involved must agree to the terms of
the contract. Can also refer to a binder, which is the preliminary substance of a contract.
Agricultural Producer - Accurate answers A business that grows, harvests, and sells crops for profit.
Aleatory - Accurate answers A characteristic of an insurance contract. Means "depending on an
unknown future event." An insurance
, contract will only pay IF and WHEN covered damages occur. Neither party knows how much the contract
will end up paying when they enter into the contract.
Answer - Accurate answers In liability cases, the defendant's response to a complaint. There are
three possible answers: 1) accept
complaint and pay for damages, 2) deny the complaint, or 3) accept the complaint with a right to insert
evidence into the case.
Annual Depreciation - Accurate answers An item's replacement cost divided by the number of
years in its expected lifespan.
Annual Transit - Accurate answers An uncontrolled inland marine form that covers loss of goods in
transit. It applies to all of the insured's
shipments during the year.
Appraisal - Accurate answers A dispute resolution method which allows the claimant and the
insurer each to select an appraiser. The
two appraisers in turn select an umpire. The appraisers then work together to determine a settlement
amount. If they cannot agree, the umpire steps in. Agreement by any two of the three is binding.
Arbitration - Accurate answers A dispute resolution method in which the opposing parties each
submit their evidence to a mutuallyagreed-
upon and neutral third party, called an arbitrator. The arbitrator reviews the positions of each
opposing side and makes a final and legally binding decision.
Arbitrator - Accurate answers The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each
opposing side before making a final and legally binding decision.
Artificially Generated
Current - Accurate answers Also called "artificial current." A peril covered in some property
insurance policies. It includes sudden and
accidental damage from any electrical current, except currents that are naturally generated, such as
lightning or static electricity.
Auto Policy - Accurate answers Insurance policy designed to protect the policyholder while owning,
occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.
Automobile - Accurate answers In insurance policies, automobile generally means any vehicle
designed for use on public roads.
Automobile No-Fault Laws - Accurate answers Laws in effect in some states that require any owner
of a vehicle to purchase no-fault insurance; that is,
insurance that indemnifies the insured, regardless of who was at fault in an accident. No-fault laws also
restrict the insured's right to sue the at-fault party.
WITH 100% ACCURATE ANSWERS
ALABAMA ADJUSTER LICENSE
STUDYGLOBAL 5/16/25 ALABAMA ADJUSTER LICENSE
,Accident Insurance - Accurate answers Covers expenses associated with a covered accident and
can extend to ambulance and emergency room
expenses, intensive care, and hospital costs. Accident insurance also provides for loss of income, and a
death benefit if injuries prove fatal
Accumulated Depreciation - Accurate answers The total decrease in an item's value over a period
of time. Formula: (annual depreciation x number of
years used). Subtract this number from the item's replacement cost to get its actual cash value (ACV).
Acreage Reporting Date - Accurate answers In crop insurance, the deadline for providing the
insurer with an acreage report, which is used to
determine the amount of coverage needed and the premium charged for a particular crop.
Actual Cash Value (ACV) - Accurate answers A valuation method used by insurers to reflect an
item's current market value right before being damaged
or destroyed. Formula: (replacement cost - accumulated depreciation)
Actual Production History - Accurate answers A history of a farmer's crop yields over a multi-year
period, which is used to determine the normal
production level of a farm.
Adhesion - Accurate answers Characteristic of an insurance contract. Means that one party (the
insurer) sets the terms, and the other
(the policyholder) can "take it or leave it.
Adjusted Gross Revenue
(Crop Insurance) - Accurate answers Narrowest (and least expensive) form of crop revenue
insurance. Insures farm revenue as a whole
instead of individual crops. Guarantees a percentage of the insured farm's average revenue.
Adjuster - Accurate answers An agent who, for compensation, processes insurance claims. The
adjuster investigates the damages,
evaluates the claim, and makes a fair and equitable settlement based on the insurance contract. Can
represent either the insured or the insurer.
Adjuster - Emergency - Accurate answers Adjusters who are temporarily licensed by the insurance
commissioner to handle claims during
catastrophes or emergencies that produce an overwhelming number of claims in a short period of time.
Adjuster - Independent - Accurate answers Self-employed adjusters who contract with multiple
insurers at the same time. Paid on a commission or
fee-plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster.
Adjuster - Public - Accurate answers An adjuster who is hired to represent the claimant and help
determine a fair indemnification. Usually
specializes in appraisals and negotiation. Paid commission, usually a percentage of final settlement.
,Adjuster - Staff - Accurate answers Salaried employee of one insurance company who can work
locally, regionally, or nationally. Also called:
Company Adjuster
Advance Payment
Settlement - Accurate answers A settlement option that lets the insurer offer some financial relief
to the claimant before the claim has
been fully settled. The insurer makes advance payments to the claimant, which are then subtracted
from
the final settlement amount. Often used when a claimant suffers bodily injury and is unable to work.
Agency Authority - Accurate answers The agent's authority to act on behalf of someone else (the
principal), usually an insurer. This authority is
derived from the agent's contract with the principal. It can be apparent, express, or implied
Agency Authority -
Apparent - Accurate answers Indirect authority that the agent can reasonably be assumed to have,
based on appearances. If an
adjuster is equipped to represent an insurer (with the insurer's permission), then an individual can
assume
that the adjuster has the authority to act on the insurer's behalf.
Agency Authority -
Express - Accurate answers Authority that is expressly given to the agent in writing. Allows the
agent to act on behalf of the principal.
Agency Authority - Implied - Accurate answers Authority that an agent possesses by implication of
her behavior, regardless of whether this authority is
granted in writing. For example, a person portraying herself as a representative for an insurance
company, even though she is not employed by that company.
Agent (Insurance) - Accurate answers Someone who has received authority from an insurer to sell
or service insurance policies.
Agreed Value - Accurate answers A valued policy in which the insurer and the insured agree to a
specific value for an item, appraised at the
inception of the policy. Often used to insure items whose value is difficult to quantify, such as antiques
or
fine art. Also called a Guaranteed Value policy.
Agreement - Accurate answers One of the four requirements of a legally binding contract. All
parties involved must agree to the terms of
the contract. Can also refer to a binder, which is the preliminary substance of a contract.
Agricultural Producer - Accurate answers A business that grows, harvests, and sells crops for profit.
Aleatory - Accurate answers A characteristic of an insurance contract. Means "depending on an
unknown future event." An insurance
, contract will only pay IF and WHEN covered damages occur. Neither party knows how much the contract
will end up paying when they enter into the contract.
Answer - Accurate answers In liability cases, the defendant's response to a complaint. There are
three possible answers: 1) accept
complaint and pay for damages, 2) deny the complaint, or 3) accept the complaint with a right to insert
evidence into the case.
Annual Depreciation - Accurate answers An item's replacement cost divided by the number of
years in its expected lifespan.
Annual Transit - Accurate answers An uncontrolled inland marine form that covers loss of goods in
transit. It applies to all of the insured's
shipments during the year.
Appraisal - Accurate answers A dispute resolution method which allows the claimant and the
insurer each to select an appraiser. The
two appraisers in turn select an umpire. The appraisers then work together to determine a settlement
amount. If they cannot agree, the umpire steps in. Agreement by any two of the three is binding.
Arbitration - Accurate answers A dispute resolution method in which the opposing parties each
submit their evidence to a mutuallyagreed-
upon and neutral third party, called an arbitrator. The arbitrator reviews the positions of each
opposing side and makes a final and legally binding decision.
Arbitrator - Accurate answers The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each
opposing side before making a final and legally binding decision.
Artificially Generated
Current - Accurate answers Also called "artificial current." A peril covered in some property
insurance policies. It includes sudden and
accidental damage from any electrical current, except currents that are naturally generated, such as
lightning or static electricity.
Auto Policy - Accurate answers Insurance policy designed to protect the policyholder while owning,
occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.
Automobile - Accurate answers In insurance policies, automobile generally means any vehicle
designed for use on public roads.
Automobile No-Fault Laws - Accurate answers Laws in effect in some states that require any owner
of a vehicle to purchase no-fault insurance; that is,
insurance that indemnifies the insured, regardless of who was at fault in an accident. No-fault laws also
restrict the insured's right to sue the at-fault party.
